El Paso Health Insurance Support from Joan Ware's blog

The health insurance market is certainly challenging, but count your lucky stars that at least you have choices. To that end, this article will probably explore the advantages and disadvantages of group health insurance.

Group Health Insurance Pros

Group health premiums are subsidized by the employer. Routinely, an employer must contribute at least 50% of the "employee only" premium. Because of this, in the event you are the employee, you can likely get a richer health plan for less premium than you would pay within the individual health marketplace. In contrast, the price to add your dependents to the employer's plan, could possibly be cost prohibitive. In this particular case, and assuming that your dependents can qualify, you might want to put them upon an individual health plan.

Group health premiums for large families are the same as for small families; whereas within the individual market, you pay a separate premium for every relative. Consequently, if you have a sizable family, you might be able to get a more suitable deal by adding them to your employer's plan. As with any insurance change even though, don't make any changes without consulting by having an experienced insurance advisor within your state.

Group health insurance in the majority of states is guaranteed issue - meaning that you can't be turned down because of pre-existing health conditions. This really is a real blessing if you or a family member has a medical problem that prevents you from qualifying for a individual plan. Yet, this really is a double-edged sword. While being guaranteed issue is a big benefit for all those with pre-existing medical conditions, it does come at a price. This one feature alone accounts for many of the disparity between group and individual insurance premiums. Yes, that is right - in most states, individual health premiums are almost always less expensive than group health premiums.

Most group plans cover maternity. Because of this, in the event that you are planning on having more children, you should definitely consider hopping on to a group plan. While you may add a "maternity rider" to individual plans, these riders often be expensive, restrictive, and otherwise provide less value than the coverage you can get in a group health plan. With that being said, in case you are considering having more children, we recommend that you contact a health insurance advisor in your state for advice about what is best for your family. The correct answer is different for each unique family.

Economies of scale can benefit employees of large employers. It is true that the larger the group, the larger the risk pool is in which to share the risk which may bring about lower premiums than are obtainable in the person health market. On the other hand, the guaranteed issue "issue" CAN wreak havoc on this sort of plan. One example is a sizable employer with good benefits tends to retain employees for long time. Eventually, the common era of the group starts to creep up and so do premiums. Aside from that, those with large medical needs (expensive medical conditions) usually be attracted to large plans because they are guaranteed issue with good coverage. And as a result, over time, not only is the group's average age increasing, but the group is also attracting employees with large expected health costs. This really is the dilemma that we see with large health plans like the u.s. auto-makers and also government plans. Eventually, those that have many medical needs begin to outnumber individuals with little if any needs and so premiums are driven higher and higher.

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